Introduction and Key Metrics


We seek to minimise our cost of capital through the appropriate mix of equity and debt finance, and ensure that we have access to sufficient financial resources to successfully implement our business plans.

As a property company, we believe that we should deliver returns that are enhanced - and not driven - by our financial leverage. Historically, we have maintained low gearing relative to the property sector. This helps provide downside protection when operating in the cyclical central London property markets, as well as maintain the financial flexibility to allow us to act quickly on new investment opportunities as they arise. Our sources of debt funding are diverse, both secured and unsecured, and include the public, private and bank markets. We maintain an attractive debt maturity ladder that fits our business.

   September 2016 March 2016
Net debt excluding JVs (£m) 738.5  567.9
Net gearing 26.1% 19.5%
Total net debt including 50% JV non-recourse debt (£m) 812.6  644.0 
Loan-to-property value 21.7%  17.4% 
Total net gearing 28.7%  22.2% 
Interest cover n/a  12.5x 
Weighted average interest rate 3.3%  3.7% 
Weighted average cost of debt 3.9%  3.9% 
% of debt fixed/hedged 80%  100% 
Cash and undrawn facilities (£m) 301  472 


Sources of debt funding

Debt maturity profile

Net gearing and interest cover